State-controlled automaker Proton is expected to launch a new replacement model for its existing small Tiara cars by the end of February, a report said today.

The Berita Harian Malay-language newspaper, citing a source close to Proton, said the car would have a 1.2-liter Renault Cleo engine, with a basic manual model to be sold at less than RM35,000.

An automatic version would cost about RM40,000 each, it said.

It said Proton was also considering putting its own 1.3 liter Campro engine in the new model.

Proton will also launch a new version of its exisiting Satria car in the second quarter of 2005, the report said.

It would come with a 1.6 liter Campro engine and be priced around RM55,000, it added.

The automaker has seen a sharp drop in its dominant market share in recent years as competition has increased.